Market makers typically execute client trades on an agency basis, meaning that the market maker trades on behalf of a client, who will finally pay, and receive, the price the market maker achieved. However, a market maker might also execute client trades on a risk basis. In this instance, the market maker himself will trade as counterparty against the client and, as a result, will have a long or short position. These risk positions are generally unwanted by the market maker and his objective is to unwind these at minimal absolute cost (referred to as “target strike or better”).